stock strategy, stock market today

Begin part 2 of 3

New plays in part 3.

SUBSCRIBER QUESTIONS

Q: Under new tax rules, is it still profitable to buy a dividend in assets held in an IRA?

A: It is still profitable, but the relative adantage over buying in a non-tax exempt account has diminished. The new tax rules create an advantage, but then take away one of the best advantages of capturing dividends in a taxable account.

The tax rate has been reduced from the taxpayer's bracket to 15%. Depending upon your tax bracket that makes buying dividend paying stocks in a taxable account more advantageous than before. When a dividend is 4% and you have to pay 35% tax on it, and also factor in the transaction costs of buying and selling the stock in order to capture the dividend, the resulting gain is not worht the effort.. In short, you can make better money elsewhere with the same or less effort.

By lowering the tax rate to 15% that made dividend capturing much more advantageous. Or did it? As part of the new tax rules, in order to get the special 15% rate, you have to hold the stock for 61 days. That means if you want to capture dividends as a primary income source, you can only do it every 61 days if you have just one block of money to work with, or you have to throw a whole lot of money at it if you want to capture more dividends and actually use it as a strategy to make any real money at it.

What you want to do when dividend capturing is make a play a week, buying the stock at the close the day before the record date and selling it the next session so you are not subject to ups and downs in the stock that can wipe out your dividend gain. You can then use the float to move into another dividend play using the same block of money. You can do this over and over with the same block of money and roll the dividends in consistently and thus make some decent money. With the new tax rule, however, you cannot use the same block of money over and over but have to hold the stock for 61 days. Effectively that limits you to at best 6 captures per year using the same block of money IF you want the 15% tax rate. To make it worthwhile in a taxable account, however, you need the 15% rate. So the taxk law gave but it also took away WITH THE INTENT to keep people from doing this. That is why it was written the way it was.

You can still capture dividends in a tax free account just as we did in the old days because you are not worried about the 15% versus 28%, 35%, etc. tax rates. Thus for serious dividend capturers, the tax law offered no change.

CONTINUING PLAYS

* * SPREADSHEET DOWNLOAD * * *

The following link is to a spreadsheet download of the continuing play table. It will allow subscribers to sort the data for your personal investment use. This is a service to our subscribers only, and no other use of the information is authorized. Simply click on the link, enter your username and password, and download the spreadsheet!

http://investmenthouse.com/daily/table.php

You will need your password. If you need help click on this link and our automated system will email it to you immediately once you fill in your email address:

http://www.investmenthouse.com/rescue/rescue.php3

LEGEND FOR CONTINUING PLAY TABLE

DATE: date play first appeared on report.

PLAY: Denotes the type of pattern or play.
Upside play types: A Wedge=Ascending triangle/wedge; BO=Breakout; Cup=Cup base; Cup hdl=Cup w/handle; DB hdl=Double bottom w/handle; Dbl btm=Double bottom; Flat=Flat base; FlyPlat=Flying Plateau; Pennant=Pennant; Rv H&S=Reverse head & shoulders; Saucer=Saucer base; Test 18=Testing 18 day MVA; Test 50=Testing 50 day MVA; Test BO=Testing the breakout (could be 10 day MVA test, etc.)
Downside play types: CCall=Covered Call; DWedge=Descending triangle/wedge; Dbl Top=Double top; H&S=Head & shoulders; Put (generic downside);

PIVOT=Buy point

Tgt=Target stock price for the play. Applies to stock and options.

Vol=Volume for the most recent session.

TgtV=Target volume to enter the play.

Stop=Stop advisory point. This is advisory and we may or may not exit a play if it hits this level depending upon market conditions.

PLAY STATUS: Buy not hit (stock has not hit buy point); Buy not issued (stock has hit buy point but did not enter due to weak volume, poor intraday action, poor market action); Current (ongoing play already entered); Entered today (entered the play that session); Exited (closed the position); Target hit (play hit initial target; will note if took all or partial gain or let run further); Trailing stop (exited using a trailing stop loss).

Upside Plays

Stock Date Play Close +/- Pivot Tgt Vol TgtV Stop

ACMR 03/10 Cup 26.17 +0.12 25.55 30.45 85K 211K 24.95
Current. volatile session as stock moves up the 10 day MVA on low volume. Needs to break through resistance at 26.67.

ACTG 03/29 Flat 6.5 -0.02 7.38 8.88 25K 185K 6.86
Buy Not Hit. Making a lateral move on the 10 day MVA on low volume.

AWRE 03/17 Test 50 4 +0.07 4.22 5.12 19K 97K 3.92
Buy Not Issued. Moving up the 10 day MVA on low volume after testing the break out.

BGFV 03/27 Flat 25.4 +0.22 25.72 30.85 119K 150K 24.22
Buy Not Issued. Continue to move up the 10 day MVA on average volume. Needs to break through resistance at 26.02.

BRCM 01/24 Test BO 40.04 +0.04 40.24 46.25 5.5M 11M 38.94
Current. Tested the 18 day MVA and rallied showing a doji on the simple 50 day MVA on low volume. Making a lateral move.

BRKT 01/12 Cup 19.88 +0.36 16.55 19.72 218K 188K 18.88
Current. Tested the 10 day MVA and rallied on stronger above average volume Moving up after testing the 50 day MVA.

C 03/29 Flat 51.94 +0.62 51.93 59.72 14M 17M 50.22
Entered today. Great move up the 10 day MVA on lower, but still strong volume.

CNMD 03/17 Flat 29.1 +0.77 29.16 35 297K 230K 28.08
Entered today. Nice move up the 10 day MVA on stronger above average volume.

CPTV 03/29 A Wedge 14.35 -0.05 14.55 17.48 93K 175K 13.53
Buy Not Issued. Tapped 14.94 at the high, but gave it back showing a doji on below average volume. Making a lateral move.

CRIO 03/25 A Wedge 3.81 +0.01 3.91 4.72 262K 456K 3.55
Current. Gapped up at the open, but gave it back as stock makes a lateral move above the 10 day MVA on low volume.

DAB 02/18 Cup hdl 15.03 +0.21 14.39 17.28 58K 175K 14.48
Current. tapping 14.77 at the high and rallied for a nice move up the 10 day MVA on higher, but still below average volume.

DIS 08/09 Test 50 25.2 +0.1 22.06 26.48 4.7M 9M 25.95

DRAX 03/08 DB hdl 5.46 -0.08 5.5 6.62 333K 500K 5.09
Current. Pull back testing the 10 day MVA and rallied on low volume. Needs to break through resistance at 5.80.

DVA 03/25 Flat 47.79 0 47.78 54.88 261K 492K 45.12
Current. Making a lateral move above the 10 day MVA showing a doji on low volume.

DYNT 03/13 Test 18 3.07 -0.12 3 3.75 141K 178K 3.02
Current. Pull back tapping 2.96 at the low and rallied holding the 10 day MVA on low volume. Testing the break out.

EBAY 03/06 Flat 69.86 +1.45 71.78 82.25 6.3M 10M 66.55
Current. Tested the 10 day MVA and rallied for a nice gain on slightly below average volume.

EBAY 12/12 Test 18 69.86 +1.45 34.72 46 6.3M 12M 66.55
Current.

EBAY 10/15 Test 50 69.86 +1.45 31.22 46 6.3M 12M 66.55
Current.

ESMC 03/16 Test 18 21.21 +0.16 17.96 21.55 689K 1.5M 17.06
Current. Moving up the 10 day MVA showing a tight doji on average volume. Needs to clear resistance at 22.30.

FMTI 01/17 Cup hdl 7.08 -0.12 3.48 4.35 714K 228K 7.28
Current. Pull back testing support at 7 and rallied on slightly higher, but still below average volume. Testing support.

FORR 03/23 Cup hdl 18.74 -0.03 19.35 23.25 66K 185K 18
Buy Not Hit. Tapped 19.10 at the low and made a fierce rally holding the 10 day MVA on low volume. Beginning to make a lateral move.

GGAL 03/22 A Wedge 8.25 0 9.15 11 253K 401K 8.51
Buy Not Hit. Tested the 50 day MVA and rallied showing a tight doji as stock begins to make a lateral move below the 18 day MVA.

GILTF 03/16 Flat 8.61 +0.26 8.64 10.38 183K 500K 8.72
Current. Tapped 7.42 at the low and rallied up the 10 day MVA on low volume. Moving up after testing the break out.

HD 03/06 Cup hdl 37.41 +0.11 37.68 45.25 5M 12M 36.25

IPT 03/03 Cup hdl 1.13 -0.09 1.31 2.15 625K 296K 1.35
Current. Gapped down and continued to move down tapping support at 1.00 at the low and made a fierce rally holding just under the 50 day MVA on much stronger above average volume.

KFX 02/24 Cup hdl 10.41 0 8.46 10.15 628K 508K 9.32
Current. Showing a doji on much lower, but still above average volume. Making a lateral move above the 10 day MVA.

LGND 03/09 Test BO 20.8 +0.24 20.46 24.12 1.5M 2.1M 18.98
Current. Continue to move up the 10 day MVA on average volume.

LIFC 02/28 Cup hdl 8.06 +0.63 7.75 9.28 518K 180K 7.28
Current. Gapped down at the open and rallied for an explosive move on excellent volume surge.

LPNT 08/09 Rv H&S 32.25 +0.55 0 0 206K 1.3M 33.88

MAMA 03/16 Test BO 10.7 -0.08 10.04 13.12 1.8M 6M 10.21
Current. Gapped down at the open and rallied holding above the 10 day MVA on low volume. Making a lateral move.

MDCI 03/11 Test BO 20.86 +0.21 20.37 23.88 109K 150K 19.68
Current. Tapped 20.25 at the low and rallied showing a tight doji on lower, but still above average volume. Moving up the 10 day MVA.

MDRX 03/24 FlyPlat 9.93 +0.15 10.12 12.15 486K 600K 9.41
Buy Not Issued. Moving up the 10 day MVA showing a doji on average volume.

MFN 03/20 A Wedge 9.67 +0.02 10.12 12.22 64K 120K 9.55
Current. Gapped up at the open, but gave it back testing the 18 day MVA and rallied holding the 10 day MVA on below average volume. Making a lateral move.

MTIC 03/27 Dbl btm 3.73 +0.36 3.39 4.28 982K 251K 3.15
Current. Explosive move on excellent volume surge.

NRD 03/06 Rv H&S 18.06 +0.34 17.35 20.85 375K 207K 16.14
Buy Not Issued. Nice move up the 10 day MVA on strong volume. Stock made a low volume ascent so did not enter the play. Looking for a pull back for possible entry.

NSM 03/24 Cup 44.43 +0.58 41.98 48.25 4.3M 6M 40.78
Current. Moving up the 10 day MVA on average volume.

NSS 03/16 Test BO 13.08 -0.01 12.56 15 196K 200K 11.68
Current. Making a lateral move showing a tight doji on stronger above average volume. Doji may indicate a change in pattern.

NUTR 02/14 FlyPlat 21.51 -0.06 16.49 19.74 224K 150K 19.48
Current. Pull back on much lower, but still above average volume. Beginning to make a lateral move.

OMCL 02/03 A Wedge 20.12 -0.82 20.68 24.72 582K 450K 19.92
Current. Pull back testing the simple 50 day MVA and rallied holding the 10 day MVA on stronger above average volume. May test back to the 50 day MVA.

OMNI 03/13 Cup hdl 7.45 -0.53 7.57 8.94 609K 784K 7.38
Current. Gapped down and continued to move down holding the 18 day MVA on stronger above average volume. Holding above support at 7.30.

ONCY 03/03 Cup hdl 6.13 -0.05 4.55 5.48 702K 156K 5.48
Current. Gapped up at the open, but gave it back on much lower, but still strong volume. Beginning to make a lateral move .

ONNN 12/16 Test BO 8.43 +0.26 7.42 8.88 2.7M 3.4M 7.67
Current. Moving up the 10 day MVA for a nice gain on average volume. Needs to clear resistance at 9.

OS 03/01 Flat 7.04 +0.04 7.12 8.55 151K 312K 6.58
Current. Making a lateral move showing a doji along the 10 day MVA on below average volume.

PETM 03/03 Cup hdl 26.84 +0.17 27.81 31.85 824K 3M 25.48
Current. Moving up the 10 day MVA on low volume. .

PKZ 03/01 A Wedge 29.04 +1.17 27.51 31.72 814K 553K 28.04
Current. Bounced off the 18 day MVA and rallied for a nice move on stronger above average volume.

PLCE 03/06 Cup hdl 30.63 +0.27 31.98 38 613K 562K 30.12
Current. Moving up the 10 day MVA on above average volume. Moving up after testing the break out.

PTNR 03/11 Dbl btm 7.83 -0.15 8.48 10.15 47K 200K 8.02
Current. Pull back tapping 7.75 at the low and rallied holding just under the 50 day MVA on low volume. Holding just above support at 7.80.

RATE 03/13 Cup hdl 18.66 +1.44 19.15 23 139K 200K 17.08
Current. Tested the 10 day MVA and rallied for an explosive move on much stronger, but still below average volume.

RITA 03/20 Test BO 5.6 +0.03 5.68 7.05 58K 90K 5.28
Current. Gapped down to open on the 18 day MVA and rallied holding just over the 10 day MVA on low volume. Beginning to make a lateral move. Moving up after testing the break out.

RMKR 03/27 Test BO 2.67 -0.18 2.52 3.15 425K 167K 2.34
Current. Pull back tapping 2.40 at the low and rallied on much lower, but still strong volume. Testing the break out.

SBUX 07/30 Cup 38.03 +0.36 30.35 36.75 3M 6M 37.32
Current. Tapped 37.28 at the low and rallied up the 10 day MVA on higher, but still below average volume

SBUX 07/01 Cup 38.03 +0.36 26.3 30.94 3M 6M 37.32
Current.

SMTS 02/28 Cup hdl 12 +0.38 9.97 11.82 112K 137K 10.92
Current. Gapped up at the open, but gave some of it back on higher, but still below average volume. Moving up the 10 day MVA.

SNCI 03/02 Test BO 12.12 +0.56 10.8 12.95 539K 469K 10.92
Current. Moving up the 10 day MVA for a great move on stronger above average volume.

SWK 03/23 Flat 43.53 0 40.56 46.65 623K 800K 40.24
Current. Beginning to make a lateral move above the 10 day MVA on much lower, but still above average volume.

TGT 08/09 Flat 45.21 -0.22 41.45 50 2.8M 5.7M 43.72

TJX 03/06 Flat 24.21 -0.03 24.75 30 1.9M 3.3M 23.45

TKO 03/17 Test 18 5.24 -0.2 4.88 5.85 446K 500K 4.78
Current. Pull back tapping 5.10 at the low and rallied on average volume. Needs to clear resistance at 5.48

TKO 02/21 Cup hdl 5.24 -0.2 3.98 4.99 446K 350K 4.78
Current.

TSCO 01/24 Cup 39.05 +0.06 45.22 55 506K 719K 42.05
Buy Not Hit.

TSCO 07/29 Test BO 39.05 +0.06 28.06 31.44 506K 494K 42.65
Current. Showing a doji on slightly higher, above average volume. Beginning to make a lateral move under the 10 day MVA.

TSCO 06/03 Rv H&S 39.05 +0.06 23.42 27.62 506K 603K 42.65
Current.

TSCO 04/24 Cup hdl 39.05 +0.06 21.88 26 506K 603K 42.65
Current.

TSCO 04/03 Rv H&S 39.05 +0.06 19.3 22.19 506K 577K 42.65
Current.

VION 03/25 Test BO 3.9 +0.01 3.86 4.68 589K 1.4M 3.59
Making a lateral move above the 10 day MVA on low volume

VWPT 03/02 Cup hdl 3.5 +0.35 1.84 2.65 2.7M 2M 3.32

WOOF 02/23 Cup hdl 34.9 -0.29 31.24 37 221K 296K 35.12
Current. Pull back showing a tight doji on low volume. Testing the break out. May test back to the 18 day MVA.

WOR 03/24 Cup hdl 19.18 +0.27 18.68 22.42 404K 554K 17.82
Current. Moving up the 10 day MVA for a nice move on average volume.

Downside Plays

Stock Date Play Close +/- Pivot Tgt Vol TgtV Stop

FITB 03/20 Put 55.21 -0.19 55.62 53.12 2.1M 2M 56.22
Buy Not Issued. Moving down the 10 day MVA on stronger above average volume. Needs low volume rally before we can enter the play.

KEY 03/20 Put 30.1 +0.05 30.32 28.72 1.7M 1.8M 30.55
Current. Making lateral move showing a doji on above average volume.

End part 2 of 3

stock strategy
stock market today